Frequently Asked Questions about
How to Buy a House in Murcia

What is an N.I.E Number?N.I.E. is an abbreviation for Número de Identidad de Extranjero, which translates as Identification Number for Foreigners, or Foreigners’ Identification Number if you prefer.

The NIE is your all-purpose identification and tax number in Spain. You need it for everything that involves a tramite or official process in Spain. For example, you will need an NIE number to buy a property, buy a car, get connected to the utilities and, most importantly as far as the Spanish state is concerned, pay your taxes. Without an NIE number, the Spanish tax authorities are unable to assess or process annual tax payments such as income tax (IRPF), and the annual wealth tax (Patrimonio), both of which are declared by resident and non-resident property owners.

NIE number certificates were being issued with a 3-month validity from the time of issue, after which you were expected to apply for residency, or register as a non-resident. So after three months the certificate was no longer valid, at least in principle. However, in mid-2016 the regulation was changed to eliminate the three-month expiry deadline, so NIE numbers are now valid indefinitely. But this is Spain and the bureaucracy is a bit of a mess, and regulations are not uniformly implemented or even understood. You may find that some notaries refuse to accept a certificate that is older than three months, which could cause problems for property buyers trying to sign deeds more than three months after obtaining their NIE certificate. In principle you can get your NIE number anytime before you buy, but to be on the safe side you might want to sort out your NIE number on your last trip to Spain, when you find a property you want to buy and can complete within three months.

If you are an EU citizen and spend longer than 3 months in Spain after getting your NIE number, you are required to register and get a government certificate that shows your NIE number.

Don't get caught out by new Spain tax laws

Once you have found the property you wish to purchase, you may be asked to sign a reservation contract. While not a necessary part of the buying process, signing a reservation contract should mean the property is no longer marketed by the estate agent. This may seem to be an innocuous document, but it is roughly equivalent to being sold subject to contract in the UK. You should therefore have your lawyer review this document before signing.

The next stage is a private purchase contract - the equivalent of an exchange of contracts in the UK. At the point this contract is signed, the buyer becomes legally liable to complete the purchase and will, at least, lose their deposit (normally 10 per cent) on withdrawal.

It shouldn’t be rushed, but if outstanding matters remain, such as obtaining a Spanish mortgage, or legal searches, then it is possible to include various conditions, or “get-out” clauses.Trust your Estate AgentMake sure you employ a professional estate agent that is legally registered in Spain, only a professionall estate agent can legally perform the whole conveyancing of the property you wish to purchase or sell, without the need of a solicitor. Your estate agent will know the conveyancing procedure that in Spain uses a public notary , this system is officially run by the government and does not act for either the buyer or seller, it is neutral, their solicitor makes all the legal checkings needed to produce the deeds and register the property.

If your estate agent is not qualified, you will need the services of a solicitor.

Everyone can sell houses, but not everyone is qualified to take you through the whole proccess

Legal stages of buying a property in Spain

To understand ongoing costs of your potential purchase a check of the nota simple and of yearly IBI (Council tax costs) should be made. You should also check that the seller is the owner of the property before you pay any money.

IF YOUR ESTATE AGENT IS A LEGAL PROFESSIONAL REGISTERED IN SPAIN SHOULD BE ABLE TO PERFORM THE WHOLE CONVENYANCING OF THE PROPERTY YOU WISH TO PURCHASE OR SELL.

Always ask for assistance in your own language, and step by step in writing

It is normal at this point for a 10% deposit to be passed to the seller. At the point the contract is signed the buyer becomes legally liable to complete within the stated timescales or risk losing deposits and or incur late payment penalties. The seller is now legally obligated to sell the property at the agreed price.

Allow yourself to take sufficient time to make sure that the property is legal and in order to be sold, no matter what pressures are applied.

At the notary, on completion day never assume signing will happen on the day booked and leave sufficient time in Spain to allow for delays.

The notary will check all paperwork, raise issues, require clarification on points, and suspend the signing until these have been sorted. That is why it is very important to have an effective legal estate agent to avoid last minute problems.

Keep all the invoices of the process, this will ensure you do not pay Spanish capital gain tax, if you wish to sell the property in the future. All invoices and receipts are evidence of the costs.

After signing at completion, a copy of the deeds are given to the buyer or their legal representative by the Notary. The originals are sent to land registry to be registered.

Tax presentation of buying a property MUST be done within a month from the day of the signature, otherwise big fines will apply.

Make sure that the changes of ownership are done in the catastro office too.